Fred Stewart said:
Dude Walker said:
"What gets us into trouble is not what we don't know...it's what we do know...that just ain't so." - Mark Twain
I love this quote...
Think about that phrase. The "things people know that ain't so" could apply to us all. We all have our convictions...
When someone is convinced that something "ain't so", changing that attitude will require more than posting on an industry networking forum where folks who are convinced it "ain't so" aren't likely to see it anyhow.
Fred, precisely
why I posted it...
Have a good day sir!
BKSound,
Welcome to the discussion...
The original post specifically addressed a person tending to their own business. It made no assumptions. It merely required a person to input their own numbers and view
possible scenarios.
Wal-Mart & Tiffany's are not in the same league, quality or customer service wise. Yet, they co-exist as businesses (not hobbies) within the economy.
This often used comparison underscores that one is greater than the other.
In reality, there is:
an rather small handful of MDJs charging $10,000+ per show.
an small group of MDJs charging $5,000 - $9,999 per show.
an slightly larger small group of MDJs charging $2,500 - $2,999+ per show.
an medium sized group of MDJs charging $1,000 - $2,499 per show.
an rather large group of MDJs charging $500 - $999
an enormous group of MDJs charging less than $499
Where would Tiffany's fit into the above price levels?
Let's use a more fair comparison, Wal-Mart vs Kmart.
Kmart was doing their own thing. Being among the oldest retailers in the US evolving from a company in 1899 known as the S.S. Kresge Company (“five and ten cent store.”) Kmart enjoyed a several profitable years after launching as a discount chain in 1962.
Kmart, however, fell upon hard time for various reasons, among them was the precariousness of the economy and impact of the deepening recession which, in turn, intensified competition among the large discounters.
It has been asserted that Kmart management made a number of miscalculations with regard to archrival mega-chains Wal-Mart and Target. In part, by dismissing the effect that rising competitors posed within a marketplace vying for a similar client base.
Wal-Mart and other retail discount stores cashed in after Kmart closed 284+ store in 2003-2004. Those pre-defined customers of Kmart became customers of Wal-Mart and others by default.
Good for Wal-Mart and others right?
On the surface, perhaps...
Wal-Mart gains a market buying position to dictate prices to suppliers. In 2004, oil price were high. Resin, by product of oil, rises in price. Resin is a key ingredient to Rubbermaid (USA) products. Rubbermaid (USA) tries to raise it's wholesale prices to retailers. Wal-Mart, being one the major gateways to the public for Rubbermaid (USA) says NO.
In retaliation to a needed wholesale increase Rubbermaid (USA) stock is pulled from the Wal-Mart store shelves and replaced with Sterlite (India).
Rubbermaid (USA) is forced to shed 5,000 jobs, 88+million dollars in American wages, 13+ million dollars in tax revenue, due to plant closings due to a lower priced product. This doesn’t include the millions in financial loss on Wall Street in stock prices. Rubbermaid essentially became a product that could not “cost effectively” be produced on American soil at the same price point.
Why? Because Wal-Mart was
“unwilling” or
“deserved” a lower price?
We must remain vigilant and aware of a competitors dealings to survive. Dismissing a competitor as inconsequential, is foolhardy.
There are many similar parallels we can derive from the above matter, however, it all comes down to pricing.
"It is difficult to get a man to understand something, when his salary depends on his not understanding it." - Upton Sinclair